The Punjab and Haryana High Court has barred judges in Rohtak from entertaining bail applications arising from a real estate fraud case involving allegations that homebuyers were duped after investing crores of rupees in a residential project.
Justice NS Shekhawat issued the direction while hearing an anticipatory bail plea filed by Subhash Gupta, a director of Gupta Property Developers Limited.
The case concerns allegations against DHL Infratech Pvt Limited and Gupta Property Developers over their residential project, DHL New Town, in Sector 27A, Rohtak. Buyers have alleged that they were persuaded to invest on the basis of assurances concerning regulatory approvals, timely possession and execution of sale deeds.
Despite payments being made, the purchasers allegedly neither received possession of the promised homes nor had sale deeds executed in their favour.
A preliminary inquiry has estimated the amount involved at around ₹11.69 crore, affecting at least 30 purchasers.
Court raises concerns over handling of investigation
The High Court expressed serious reservations about the manner in which the case had been investigated. During an earlier hearing, the Court had observed that efforts appeared to have been made to protect those allegedly responsible for cheating investors.
In its latest order, the Court also noted that several accused, including directors associated with DHL Infratech, had secured bail from the Rohtak trial court despite allegations linking them to other instances of fraud.
The Bench said it had been apprised of additional circumstances concerning the case but chose not to detail them in the judicial order.
Against this backdrop, the Court directed that judicial officers in the Rohtak Sessions Division should not entertain bail pleas connected with the case.
“The judicial officers posted at Sessions Division, Rohtak, are restrained from entertaining any bail applications in the present case,” the Court ordered.
Police action under scrutiny
The High Court also questioned the delay in taking action against the real estate promoters and developers.
According to the Court, the investigation had not progressed adequately despite earlier directions, and the investigating officer appeared to be assisting the accused rather than pursuing the matter effectively.
The Bench observed that property developers sometimes collect substantial sums from buyers by presenting an attractive picture of future housing projects, only for promised homes not to materialise and invested money to remain unrecovered.
The Court further remarked that such conduct can reflect a broader pattern rather than isolated contractual disputes. In appropriate cases, what appears initially to be a disagreement between buyers and developers may, on closer examination, reveal a wider scheme allegedly designed to defraud investors.
The Court particularly took note of the fact that no effective action had reportedly been taken against the developers even four months after registration of the FIR.
“It is apparent that the police officials posted at Rohtak are hesitating in taking action against real estate promoters/developers,” the Court observed.
Senior IPS officer to oversee probe
The High Court has now asked the Haryana government to appoint a senior IPS officer to take charge of the investigation and file a status report detailing the progress made.
The matter has been listed for further hearing on October 28.
The Court’s directions place both the investigation and the handling of bail applications in the case under closer scrutiny as the proceedings move forward.